What to Expect in the Coming Year? Forecasts show 2023 as an opportunity for Shippers to contract lower rates across the board. 2022 was a pivotal year seeing the end of hyper inflated consumer demand coupled with capacity shortages. Reduced transportation labor force due to covid, congested corridors and equipment shortages with lower service reliability were the norms in 2022. …
Can the shipper manage through FedEx and UPS’ complex increases for 2023? UPS announced their 2023 rate increases which will be made effective January 2nd, 2023. The increases came two months after a FedEx announcement of rate increases. Nothing unusual here as both carriers have routinely announced increased rates and rolled out new surcharges /fees despite posting record earnings at …
…and when should shippers consider contract rates? Spot Rates have fallen off the cliff! This time last year, the average cost per forty-foot container (FEU) moving Eastbound from China to Long Beach California cost more than $15,000 and there were additional fees to secure space on the vessel from competition. The capacity climate this time last year was extremely tight and combining that …
Can the shipper manage through these complex rate increases? UPS announced their 2021 rate increases which will be made effective in January of 2021. These UPS shipping rates increases came two months after a FedEx’s announcement of its upcoming shipping rates increases. Nothing unusual here as both carriers have routinely announced increased shipping rates and rolled out new surcharges / …
Port congestion improving, but post pandemic pricing pressure expected to continue into Q3 & Q4 Congestion at USA seaports is improving but is expected to endure into the summer and possibly through to the end of the year. Gene Seroka, Executive Director of Port of Los Angeles expects the backlog to be eliminated by end of May 2021 or early …
Shippers looking to divert from ocean freight exerts upward pricing pressure on air cargo Demand for shipping is rising as countries begin opening themselves back up to both domestic and international travel, and the world economy is starting to see a strong rebound from the devastating impact COVID-19 wreaked in 2020. Demand for shipping in 2021 is surging but ocean …
What is effect of port congestion on contract pricing? Covid-19 has upended nearly every industry and international shipping is not immune. Congestion at US seaports resulting from demand exceeding the supply of port services is complicating the traditional contract signing season. Some shippers are opting to negotiate earlier than usual, some as early as January and February. The effect on …
Smart shipping involves preparation, coordination, and accommodation The shipping industry continues to evolve away from the days when shippers called all the shots and carriers danced to their tunes. Today even shippers with high volumes, who used to throw their weight around, now need to adhere to some of the parameters set out by the freight carriers. In the shipping …
9B tons of goods to be carried by ships in 2021 adds pricing pressure Nearly 90% of international trade is shipped across the oceans. More than 9 billion tons of goods are carried annually by ships worldwide, and freight volume continues to ebb up each year. As such, it is fair to say that shipping is the lifeblood of global …
Criteria for selecting a freight carrier for your shipping operations Carriers are an indispensable part of the freight industry. At such, partnering with the correct carrier capable of meeting your shipping needs is extremely important. Transportation, the largest cost of total logistics, is a key component of supply chain management. Below are important things to evaluate before deciding on a …